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Gold Coast houses to soar by 2020 according to latest report

GOLD COAST STOCK

THE median price for a house on the Gold Coast is expected to exceed $650,000 for the first time in the next three years.

A report released today by insurance provider QBE predicts house prices will rise 6 percent to 2020, to a record $665,000.

Figures released by CoreLogic in June show the median house price is currently $620,000.

The Gold Coast has enjoyed significant growth since the fallout of the global financial crisis, but some analysts feared it would cool after the Commonwealth Games and as the hot Sydney market tapered off.

However, industry heads said the QBE report’s forecast growth was a reasonable prediction given the level of development and continued migration from southern states.

V8 SUPERCARS GOLD COAST 600

View of Surfers Paradise. (AAP Image/Regi Varghese)

“The Gold Coast is poised to capitalize (on this) because of infrastructure investment was undertaken,” said Tony Fitzgerald, a director of property valuer LMW.

Mr. Fitzgerald said the Coast’s median price was relatively affordable compared to Sydney.

The QBE report also predicted a five per cent rise for units on the Glitter Strip by 2020, to $425,000.

GOLD COAST STOCK

A house could cost you $665,000 by 2020. (AAP Image/Dave Hunt)

The projected rise is in contrast to unit prices in other major areas across the country, which are tipped to fall due to an oversupply.

Mr. Fitzgerald said compared to the established housing market, units were susceptible to supply and demand, which made it harder to predict accurate growth.

GOLD COAST STOCK

Could more Sydneysiders be moving here? (AAP Image/Dave Hunt)

Ray White Surfers Paradise Group CEO Andrew Bell agreed, saying while the figures didn’t sound unachievable, growth in units and apartments was typically slower.

“It’s the one market you watch that there’s not an oversupply. At the moment there’s no indication of that happening,” he said.

Mega mansion being auctioned at 11am. Was the home

Andrew Bell says the Coast is in its best position ever. Picture: Glenn Hampson

“What I feel very confident about is the Gold Coast is in the best position ever with very solid fundamentals and that there is great momentum in the local economy.

“There are no clear signs of anything that will knock the market.”

Mr. Bell said as long as interest rates and unemployment numbers did not rise significantly, the market would continue to rise at a sustainable pace.

REIQ Gold Coast zone chair John Newlands gives us

REIQ Gold Coast chairman John Newlands says six percent is sustainable growth over three years. Picture: Scott Fletcher

REIQ Gold Coast chairman John Newlands said the six percent prediction across the three years was reasonable.

“It’s a safe and reliable statistic and rather sustainable,” he said.

“Better than a boom and a bust.

“There is an emerging trend, not just on the Gold Coast, where people are tending to live in units; empty nesters who don’t want to look after pools.

“(They) can buy at a lesser price and put money in the bank.”

Mr. Newlands said the Coast’s excellent weather was also a big driver in attracting buyers.

Originally Published: https://bloorhomes.com.au/

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Opinion

Safe as Brisbane houses

Brisbane

If I had to pick the safest major capital city market to purchase an investment property, I would choose to buy a detached house in Brisbane.

My reasoning is straightforward.

First, Brisbane’s relative cost against Sydney and Melbourne is running near the lowest level in almost 50 years.

 

Article Source: www.macrobusiness.com.au

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Opinion

Are first home buyers really priced out of the property market?

OPINION

Some people will kill for a bit of free publicity. The first thing to be murdered is the truth, in the quest for cheap limelight.

In real estate, a perennial favourite among those who seek media profile is the affordability crisis. This is a ripper yarn because it tugs at the tear ducts of all Australians whose hearts bleed for desperate young couples who can’t afford to buy a home.

It’s rubbish, of course, but the truth is always optional in these kinds of storylines.

First, here’s the reality. The past year has been the best time ever to be a first-home buyer in Australia. The level of government assistance has never been higher and the cost of finance has never been lower. And investors have been fence-sitting so first-timers haven’t had a lot of competition.

And young home-buyers have responded in record numbers.

home buyers

Auburn Square 35 Northumberland Road, Auburn NSW 3044 

Yet, despite all of that, there are organisations who have managed to construct a scenario where no one can afford to buy or that prospective first-timers have to save for 10 or 12 years to cobble together a deposit for a meagre dwelling.

Here are some recent headlines from mainstream media:-

– “Policy failures see houses become unattainable for young Australians”

– “Australian housing affordability worsens amid fears proposed safe lending laws repeal will lead to debt disaster”

– “Tensions in housing market as affordability worsens”

– “First home buyers take 10 years to save for a deposit”

– “From down payment to dealbreaker: Average house deposit now exceeds 100k”

Those last two screamers are the biggest lies.

How do they concoct such scenarios, at a time when FHBs are out there buying in such large numbers?

home buyers

Kew Schofields Stage 2- Georgette 23-27 Schofields Road, Schofields NSW 2762 

Very easily, so as long as you’re not bothered by a conscience. You simply create a formula in which every component is a work a fiction.

Here’s the proposition they put forward:-

– How long does it take the average young couple on typical incomes to save a 20% deposit to buy the median-priced house in Sydney?

It’s difficult to imagine a scenario more distant from the reality of most FHBs across the nation.

Here’s why …

– They stipulate a 20% deposit. Nobody saves a 20% deposit. You don’t need to. You can currently get into a first home with a 5% deposit without having to pay mortgage insurance.

– First-home buyers don’t buy median-priced properties, not in Sydney or anywhere else. They buy in the lower price ranges.

– Why houses? Many young Australians prefer apartments and not just because they’re much cheaper. Why do these fictitious scenarios never insert apartments into the equation?

– Why this focus on our most expensive? Why not Brisbane or Perth or Adelaide?

home buyers

Quay Waterfront Newstead 57 Skyring Terrace, Newstead QLD 4006

So here’s a realistic equation to give a true appraisal of the prospects for young buyers: how long does it take to save a 5% deposit to buy a house in the lower price quartiles in Brisbane?

Or how long does it take to save the required deposit to buy an apartment in Adelaide or Perth or Hobart?

Or, given the predominate trend in Australian real estate, how long to save a 5% deposit to buy a house in Orange or Wollongong or the Sunshine Coast or Bendigo or Geelong?

Those are scenarios that equate to the reality faced by most prospective first-home buyers.

But you will never see that equation presented in mainstream media, because it doesn’t serve the desired outcome: a screaming negative headline, with the truth optional.

 

Article Source: www.urban.com.au

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Opinion

First-home buyers are big budget winners

home buyers

Help for first-home buyers and single parents to own a home and continuation of an income tax break for low and middle income workers are among key measures that will put more cash in the pockets of Australians following the 2021-22 federal budget.

There is an the increase in the First Home Buyer Super Saver Scheme to a maximum of $50,000, up from $30,000, that can be withdrawn from superannuation to put towards a house deposit. The increase comes into effect on July 1, 2022.

There are annual contribution caps to how much can be made in voluntary contributions that have to be saved in super first, under the scheme, before the money can be withdrawn.

Pension loan scheme

There are changes to the Pension Loan Scheme which allows almost anyone who owns a property and has reached pension age to take out a “reverse mortgage” from the government, where the balance of the loan is repaid when the property is sold.

The scheme pays an income up to an amount that is equal to the maximum age pension.

Under changes that come into effect from July 1, 2022, up to 50 per cent of the maximum annual age pension can be accessed as a lump sum each year. The total amount accessible under the scheme has not changed.

“[The change] is important as it could allow older Australians to access the capital in their home to pay for large, one-off items, such as medical services or home repairs, which they may not otherwise be able to afford,” says Colonial First State general manager Kelly Power.

Downsizer contribution

To help free-up homes for younger families, from July 1, 2022, those aged at least 60 will be able to make a one-off contribution of up to $300,000 per person, or $600,000 per couple, to their super when they sell a home that they have owned for at least 10 years. The qualifying age is currently 65.

Jason Murray, chief of member experience at QSuper, says the downsizer contribution allows retirees to move to more suitable housing as their family size drops and to turn the capital tied up in their home into retirement income.

Family Home Guarantee

The newly introduced Family Home Guarantee (FHG) allows single parents with a maximum annual income of $125,000 to purchase a new or existing home with a minimum deposit of 2 per cent. It is available for property purchases of up to $700,000 in Sydney and $600,000 in Melbourne.

The scheme is limited to 10,000 places over four years; though, if the uptake is strong, the government could well add more places. The scheme starts on July 1.

Eliza Owen, head of research Australia at CoreLogic, says single parent households are largely headed by women, making up about 64 per cent of lone parent and lone-adult households.

“As a result, this policy may contribute toward narrowing the gender wealth gap,” she says.

Andrew Wilson, consultant economist at Archistar, estimates a single parent earning $125,000 using the FHG would be able to borrow about $500,000 at current interest rates to purchase a home.

However, that will still leave them with few options to purchase appropriate family friendly homes in Sydney and Melbourne, where prices are booming, Dr Wilson says.

New Home Guarantee

The government has also extended and renamed a scheme where first-home buyers with a maximum income for couples of $200,000 can purchase a home with a deposit of just 5 per cent.

The price ceilings for the New Home Guarantee are $950,000 in Sydney and $850,000 in Melbourne, with 10,000 places becoming available from July 1 to those seeking to build a new home or purchase a newly built home.

Dr Wilson says the measures to assist first-home buyers are a bit “ho-hum”, given recent rocketing property prices. “They are narrowly targeted and are unlikely to significantly stem an ongoing decline in activity from first-home buyers”, Dr Wilson says.

“Increasing activity from investors and rising property prices are likely to see first-home buyer activity fall by 20 per cent next year, and that is assuming full uptake of the schemes announced in the budget”, he says.

Tax relief

Tax relief will be extended for another year from July 1, in the form of retention of the Low and Middle Income Tax Offset. It is worth a maximum of $1080 for individuals and $2160 for couples, with the main benefits going to those earning between $48,000 and $90,000 a year.

The budget confirmed the current $10,560 cap on the childcare subsidy will be removed.

Families with two or more children aged 5 and under will receive an increase of up to 30 percentage points in the subsidy for their second and later children up to a maximum of 95 per cent of fees paid.

 

Article Source: www.brisbanetimes.com.au

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